Title- Relationship between Nifty 50 and Siemens Ltd. Equity price.
Name of Author- Shubham Sanjay Gandhe (021230022335)
Introduction- Siemens Limited is an India-based technology company. The Company is focused on industry, infrastructure, digital transformation, transport, transmission, and generation of electrical power. Its segments include Energy, Smart Infrastructure, Mobility, Digital Industries, Portfolio Companies, and Others. Its Energy segment provides fully integrated products, solutions, and services across the energy value chain of oil and gas production, power generation, and transmission for various customers. Its Smart Infrastructure segment supplies products, systems, solutions, and services for the transmission and distribution of electrical energy for power utilities, industrial companies, and infrastructure segments.
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the NSE site and after that Siemens Ltd. Equity (y) was regressed on Nifty 50 (x).
Data Analysis
Regression equation, β= -0.004 + 0.745(x)
Where x represents the Nifty 50.
No. of observations (N)= 50
R²=0.2554, F=16.805
t-stat for x=4.099
The above equation tells us the relationship between Siemens Ltd. Equity (y) and Nifty 50 (x). The positive sign means there is a direct relationship between them, which means if Nifty 50 increases, then the equity price of Siemens Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by 0.505 Rs.
T-stat for the Nifty 50 is 4.099 and the p-value is 0.000155 which is less than 0.01 means the data is statistically significant at a 1% confidence level.
N=50, there is a total of 50 observations.
R²=0.2554 means 25.54% of y is explained by x while the rest 74.46% is an error.